Within his recently unveiled memoir, named Ithaki, the former premier Alexis Tsipras pulls no punches as he revisits the chaotic period of Greece's financial crisis.
A Controversial Appointment
In the ex-PM's account, Tsipras selected the unorthodox academic Yanis Varoufakis as his finance minister primarily due to the latter's international reputation and his highly compelling abilities as a communicator.
“In reality, he was, actually, more of a celebrity and less of an economic expert,” recalled Tsipras.
Clashing Agendas
Tsipras alleges that his finance chief had a personal motives that involved promoting his books and experimenting with his own theories on the nation instead of genuinely advocating its financial survival.
Tsipras wrote how those discussions to prevent bankruptcy were “not just a method of achieving a better deal for the country. They became an experiment, a monumental chance to demonstrate the validity of his theories.”
High-Stakes Negotiations
During tense negotiations, the country found itself perilously close to leaving the single currency area.
On the line was not only the country's future but also those punishing austerity measures demanded in exchange for rescue loans from international creditors.
Failed Options
Efforts to secure financing from other sources, including an urgent appeal to Russia to buy Greek government bonds, were rejected.
Assisting the indebted country would be equivalent to throwing money in the trash-can, Putin reportedly told his Greek counterpart during their meeting.
Referendum Followed by Reversal
That summer, the harsh bailout terms were put to a popular referendum, an action that threw the EU into further existential crisis.
Although the vote was won resoundingly by voters against the cuts, Tsipras was forced to reject its outcome then negotiate a rescue deal with creditors which proved to be tougher.
Final Straw
Tsipras revealed how he began to doubt Varoufakis quite early on.
“Varoufakis was the face of the talks, the man who attracted publicity, who appeared on the covers of publications the world over … he gave the impression he was enjoying his new role.”
After the minister outlined a contingency plan involving creating a parallel currency as well as issuing coupons to retirees, the leader knew that it was the end questioning Varoufakis: “Are you serious?”
Lasting Rebuke
In the book, the author asserts that Varoufakis had proved himself to be “unsuitable for a deal demanding complex and delicate handling.”
Tsipras also wrote how his confrontational style left him increasingly isolated among peers, endangered the country, and assisted hawks that were pushing for Grexit.
The account of events has provoked anger along with shock among certain groups, while Varoufakis has kept a conspicuous quiet regarding these claims.
